Australia has announced plans to limit the number of international students enrolling in 2025 to 270,000. This decision is part of an effort to control record-high migration levels, which have been driving up rental prices across the country.
The move comes after the government began rolling back special rules for foreign students and workers that were introduced during the COVID-19 pandemic. These rules had helped businesses find local staff when international borders were closed.
Education Minister Jason Clare noted that there are now about 10% more international students in Australian universities compared to before the pandemic and about 50% more in private training programs. He said the changes aim to create a fairer and more sustainable system for international education in the future.
International education is a major industry in Australia, contributing A$36.4 billion ($24.7 billion) to the economy last year. However, many Australians are concerned that the large number of foreign students and workers is worsening the country’s housing shortage. This issue is expected to be a key topic in the next election.
In the year leading up to September 2023, net immigration reached a record 548,800, a 60% increase from the previous year. Most of this increase came from students from India, China, and the Philippines. While the influx has helped fill job vacancies, it has also made it harder for people to find affordable housing.
To manage this, the government recently doubled visa fees for foreign students and promised to close loopholes that allowed them to stay in the country longer than intended.